The safety and soundness effects of bank M&As in the EU: does prudential regulation have any impact?

Jens Hagendorff, María J. Nieto () and Larry Wall
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María J. Nieto: Banco de España

No 1236, Working Papers from Banco de España

Abstract: This paper studies the impact of European bank mergers and acquisitions on changes in key safety and soundness measures of both acquirers and targets. We find that capitalization, profi tability and liquidity show signs of statistically and economically significant mean reversion for acquirers. Also, acquirers in cross-border deals tended to perform better when their home country prudential supervisors and deposit insurance funding systems were stricter than the target‘s. For target banks, the most consistent findings from the crosssectional regressions are that stronger supervision and tougher deposit insurance funding regimes tend to result in positive post-merger changes in liquidity and performance

Keywords: banks; mergers; Europe (search for similar items in EconPapers)
JEL-codes: G21 G28 G34 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2012-10
New Economics Papers: this item is included in nep-ban, nep-com and nep-eec
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Citations: View citations in EconPapers (2)

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http://www.bde.es/f/webbde/SES/Secciones/Publicaci ... /12/Fich/dt1236e.pdf First version, October 2012 (application/pdf)

Related works:
Journal Article: The Safety and Soundness Effects of Bank M&A in the EU: Does Prudential Regulation Have any Impact? (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:bde:wpaper:1236

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